The Hong Kong share market rose to a five-month high yesterday, supported by a raft of positive factors including Beijing's move on Tuesday to ease interest rates. The Hang Seng Index climbed 165.2 points, or 1.41 per cent, to finish at 11,810.63, its highest level since October 21. Brokers said the market was also boosted by positive sentiment generated by the strong prices paid at Tuesday's government land auction and hopes for a reduction in interest rates. The pick-up in sentiment in the region and Wall Street's record-setting form lent further strength to the market, they said. Over the past five sessions, the benchmark has climbed 6.2 per cent, taking gains since the year-low in January to just above 45 per cent. Schroder Investment Management director David Lui Yin-tat said: '[The mainland rate cut] did not surprise me. There was a need to further reflate the domestic economy. 'The magnitude of the cuts was a bit disappointing, but that may mean further cuts in the pipeline.' On Tuesday, the People's Bank of China trimmed bank lending rates by an average 0.6 percentage point and lowered bank reserves requirements from 13 per cent of deposits to 8 per cent. The easing, which came less than a week after Zhu Rongji's appointment as premier, will ease the interest-payment burden on mainland corporates. Red chips and H shares outperformed on the news. The H-share index jumped 5.52 per cent to 758.77 points, while the red-chip measure rose 1.42 per cent to 1,728.37 points. 'It was mainly overseas buying,' Sassoon Securities dealing director Michael Ng said. 'The trading range was quite narrow as we opened up 200 points. It came off slightly in the afternoon.' Turnover was $12.28 billion, comfortably ahead of Tuesday's $7.52 billion. 'Banks were a focus. Interbank rates are coming off and there is speculation of an interest rate cut this week,' Mr Ng said. HSBC and subsidiary Hang Seng Bank climbed. Properties were also stronger in the wake of the land auction, at which two residential sites sold at the top end of analysts' forecasts. Sino Land extended Tuesday's gains, rising more than 4 per cent to $4.025. Nan Fung Development, which holds 10 per cent of Sino, picked up a Peak site for $920 million. After the market closed, Sino Land said net profit in the six months to December rose 32.6 per cent to $1.01 billion. Cellular operator SmarTone Telecommunications topped the most-actives list after paging operator ABC Communications said it would sell the bulk of its 12.4 per cent stake in the company. SmarTone dropped 6.15 per cent to $21.40 on trade worth $1.24 billion, edging HSBC into second place. ABC shares eased 1.08 per cent to $2.30.